70) On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? A. Cash B. C. Accounts Receivable Cash Accounts Receivable Cash Sales Discounts Accounts Receivable D. Cash Sales Discounts Sales Revenue 60,000 58,800 58,800 1,200 60,000 60,000 58,800 60,000 1,200 58,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer the following 2 questions: 

70) On July 8, Ray Inc. sold 100 printers to Office Rental Company at
$600 each and offered a 2% discount for payment within 10 days. On July
15, Office Rental Company paid the full amount in cash. What should Ray
Inc. record on July 15?
A. Cash
B.
C.
Accounts Receivable
Cash
Accounts Receivable
Cash
Sales Discounts
Accounts Receivable
D. Cash
Sales Discounts
Sales Revenue
60,000
58,800
58,800
1,200
60,000
60,000
58,800
60,000
1,200
58,800
Transcribed Image Text:70) On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? A. Cash B. C. Accounts Receivable Cash Accounts Receivable Cash Sales Discounts Accounts Receivable D. Cash Sales Discounts Sales Revenue 60,000 58,800 58,800 1,200 60,000 60,000 58,800 60,000 1,200 58,800
106) At the end of its first year of operations, a company has accounts
receivable of $250,000. The company expects to collect 90% of these
accounts. The company's year-end adjusting entry for uncollectible
accounts would be:
OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000.
B) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for
$25,000.
D) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for
$25,000.
C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for
$25,000.
Transcribed Image Text:106) At the end of its first year of operations, a company has accounts receivable of $250,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000. B) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $25,000. D) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $25,000. C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for $25,000.
Expert Solution
Step 1 Introduction

Journal Entry :— It is an act of recording transaction in books of account when transaction occurred. 

 

Adjusting Entries :— These are journal entries that are passed at the end of the accounting period to adjust the balance of expenses and revenues account. 

 

General Rule:—

  1. Debit the receiver, credit the giver.
  2. Debit what comes in, credit what goes out.
  3. Debit all expenses & losses, credit all incomes & gains.
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